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Grow Through Development

You’ve done your research and found the perfect location. It’s got a strong customer base and a thriving economy. Unfortunately, everyone else knows it’s perfect too. Hot spots like these can skyrocket in value, making a purchase cost-prohibitive. If you find yourself in this situation, consider new construction. Our team stands ready to give you the financial tools to build your dream location from the ground up.
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Land Acquisition

The first step to any construction project is getting the land you’re planning to build on.

Construction Loans

Once you’ve acquired the ideal place for your new building, it’s time to start construction.

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Properties

While every property is considered an investment, certain “investment properties” are solely designed to generate income.

Fix & Flip

If you’re looking for other ways to make money from real estate, you can buy properties for the purpose of renovation and resale.

Financing Details

Land Acquisition and Development Loans

Purchasing the land you’re planning to build on is a critical (and often expensive) first step. However, you’ll need to pay for quite a few things to fully prepare your land.  This includes hiring a surveyor, performing an environmental impact assessment, filing for city permits, clearing trees, creating utility connections, and planning for water retention.  All of these extra costs add up quickly. That’s why land acquisition and development loans are such valuable tools. 

A well-made loan can help you through this process in an affordable way. Instead of dealing with large upfront costs, you can hold off on payment until the land is ready. You can use the savings for other areas, and use the extra time to save for repayment.  Reach out to let us match you to a solid land acquisition loan today.

Construction Loans

Once you’ve acquired and prepared the ideal place for your new building, it’s time to think about the construction process. You could get a traditional loan to cover expenses, but what if something goes wrong? Labor shortages, natural disasters, and supply chain shortages are all examples of issues that can derail your project. If you’re forced to delay or even stop construction, you’ll still be on the hook for repaying the entire loan. 

Construction loans, however, are built with the unexpected in mind. Before breaking ground on the new project, you and your lender will agree to a set of milestones.  Funds are then released gradually, as you complete each milestone.  This arrangement means that you are liable only for the already-released portions, instead of the total loan, giving you coverage in the event of a major setback.

Term-to-Perm Construction Loans

The average construction loan is meant to mature when your construction project is complete. Until you’re ready to cut the ribbon, you will only pay the interest. When you’re finished building, however, the principal of the loan comes due. Construction loans often give you the option to transition to a permanent loan. 

If you choose to transition a long-term option, you don’t have to pay the principal as a lump sum. Instead, the principal will roll over into a permanent construction loan. Afterward, payments will go toward both the principal and the interest. This type of transaction is much more convenient than taking out two separate loans to cover the transition.


Fix & Flip

If you don’t necessarily need more building space, but would still like to invest in real estate, you can buy properties for the purpose of upgrading them. Once repairs and renovations are done, you can sell the property for a profit. Fix-and-flip loans are the perfect way to finance the purchase you intend to resell. 

Because fix and flip loans can be approved quickly, you can seize great real estate deals before they expire. You can also make a cash offer while your competition is stuck waiting for traditional financing. Additionally, the short-term nature of these loans means you’re not locked into payments for a property you may no longer own.

Grow Through Development

Take The Next Step

Get Started

Advantages Of Development & Construction

Devlopeing your own property is a smart tactic. With our help, you can:

Quickly increase your purchasing power

Transition from a short-term obligation to a long-term loan

Avoid financial disruption from unforeseen construction setbacks

Acquire investment properties and profitable renovation projects

F.A.Q.’s

What is the typical down payment on a construction loan?
In general, most lenders require a 20% to 25% down payment for a construction loan. However, the down payment varies by lender and often depends on your company’s financial health. And as always, the more money you put down, the lower your interest rate may be.
What is the average interest rate on a construction loan?
Most construction loans carry a 5% to 10% interest rate, but final rates vary by lender.
Are commercial interest rates higher than residential?
Yes, lenders normally charge higher interest rates on commercial properties because they are harder to sell and repayment encompasses more risk.
What does “owner-occupied” mean?
An owner-occupied property is a building used primarily to house the owner’s business. To be considered “occupied” by the owner, that owner has to use at least 51% of the building’s available space. Loans for owner-occupied projects are structured a bit differently than standard construction loans, and usually have better terms.
Investment Properties
While every property is considered an investment, not all properties are designed to house their business owners. “Investment properties” are specifically designed to generate income. Typically, they are buildings that house tenants who pay a monthly rent. The owner makes back their initial investment through rental income. Investment properties can include office buildings, retail centers, apartment homes, and hotels.

Grow Through Development

Get Started Today

Here’s how to get started:

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Fill out a Short Questionnaire

Your answers will help us get a good idea of where you want to go with your business. Whether you’re dealing with strained resources, leasing issues, or high-cost markets, we can help you secure the funds you need.
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Speak with One of our Brokers

After reviewing the questionnaire, we’ll talk with you and go deeper into the details of your financial situation. Once we understand what you truly need, we’ll hunt down the best offers for you, and arrange a discussion to present our findings.
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Recieve Customized Financing

We will work with you to answer all of your questions. Once you are satisfied and ready, we will help you with an official funding application process.

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Enjoy Continued Support

We understand that some forms of financing are complex, and may require advice beyond the initial application.  Our team of professionals stands ready to help you along every step of the way.

OUR ADDRESS

625 Kenmoor Ave SE Suite 301
Grand Rapids, Michigan 49546

PHONE NUMBER

616-229-4548

SUPPORT MAIL

info@criticalfundinggroup.com
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